WARMUPS

1
WARMUPS

• WHAT IS THE BISECTED ANGLE OF 78 DEGREES?
• FIND 23 PERCENT AS A DECOMAL
• EVALUATE 54 - 36
• EVALUATE 52 142 (33 23)

2
HOMEWORK

• 1. Find the simple interest on a 340 loan at
  each rate
• A. 7 annual interest, 3 years. 71.40
• B. 12 annual interest, 5 years. 204
• C. 15 annual interest 1 year. 51
• D. 6 annual interest 9 months. 15.30
• 2. Find the simple interest earned
• A. 1,000 at 5 for 9 months. 37.50
• B. 4,500 at 4 for 8 months. 120
• C. 500 at 1.75 for 180 days. 4.32

3
FINDING PERCENT INTEREST - COMPOUNDED
4
INTEREST WHAT IS IT?

• MONEY EARNED FROM SAVINGS ACCOUNTS.
• MONEY EARNED FROM BONDS.
• MONEY EARNED FROM SECURITIES.
• MONEY EARNED FROM LOANS.

5
COMPOUND INTEREST FORMULA
6
THE COMPOUND INTEREST FORMULA GIVES THE TOTAL
AMOUNT OF MONEY IN YOUR ACCOUNT AT THE END OF THE
TIME PERIOD.IT INCLUDES INTEREST PRINCIPLE.
7
USING INTEREST PERCENT

• TO USE IN THE FORMULA YOU MUST CHANGE PERCENT
  TO A DECIMAL
• EXAMPLE 12 .12

8
REMEMBER ORDER OF OPERATIONS

• P - PARENTHESIS
• E - EXPONENTS
• M - MULTIPLICATION
• D - DIVISION
• A - ADDITION
• S - SUBTRACTION

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USING THE COMPOUND INTEREST FORMULA
10
COMPOUND INTEREST FORMULA
11
COMPOUND INTEREST FORMULA

• DO PARENTHESIS FIRST

12
COMPOUND INTEREST FORMULA

• DO EXPONENTS NEXT

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COMPOUND INTEREST FORMULA

• MULTIPLY ANSWER BY THE PRINCIPLE

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COMPOUND INTEREST FORMULA

• YOU HAVE SOLVED FOR THE TOTAL AMOUNT IN THE
  ACCOUNT.

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LET ME SHOW YOU HOW
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COMPOUND INTEREST

• IF I PUT 6000 IN THE BANK, AT A RATE OF 8, WITH
  4 INTEREST PERIODS A YEAR FOR 3 YEARS, WHAT WOULD
  BE THE VALUE OF MY ACCOUNT?

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WHATS IMPORTANT?

• IF I PUT 6000 IN THE BANK, AT A RATE OF 8, WITH
  4 INTEREST PERIODS A YEAR FOR 3 YEARS, WHAT WOULD
  BE THE VALUE OF MY ACCOUNT?

18
WHATS IMPORTANT?

• IF I PUT 6000 IN THE BANK, AT A RATE OF 8, WITH
  4 INTEREST PERIODS A YEAR FOR 3 YEARS, WHAT WOULD
  BE THE VALUE OF MY ACCOUNT?

19
WHATS IMPORTANT?

• IF I PUT 6000 IN THE BANK, AT A RATE OF 8, WITH
  4 INTEREST PERIODS A YEAR FOR 3 YEARS, WHAT WOULD
  BE THE VALUE OF MY ACCOUNT?

20
WHATS IMPORTANT?

• IF I PUT 6000 IN THE BANK, AT A RATE OF 8, WITH
  4 INTEREST PERIODS A YEAR FOR 3 YEARS, WHAT WOULD
  BE THE VALUE OF MY ACCOUNT?

21
WHATS IMPORTANT?

• PRINCIPLE - P 6000
• RATE OF INTEREST - r 8
• NUMBER OF INTEREST PERIODS A YEAR - n 4
• TIME IN YEARS - t 3

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P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION

23
P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS

24
P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS

25
P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS

26
P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS

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P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS

28
P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS

29
P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS
• MULTIPLY BY PRINCIPLE

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P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS
• MULTIPLY BY PRINCIPLE

31
P 6000 r 8 n 4 t 3

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS
• MULTIPLY BY PRINCIPLE
• YOUVE SOLVED THE EQUATION!!!

32
I AM RICHER THAN BEFORE

• I STARTED WITH 6000

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I AM RICHER THAN BEFORE

• I STARTED WITH 6000
• I ENDED WITH 7609.45

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I AM RICHER THAN BEFORE

• I STARTED WITH 6000
• I ENDED WITH 7609.45
• I EARNED1609.45

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YOU DO THE MATH FOR THE FOLLOWING STATEMENT,
WHAT IS IMPORTANT INFORMATION?
36
WHAT IS THE INTEREST EARNED FROM PLACING 2,500
IN A SAVINGS ACCOUNT THAT EARNES 5.5 PERCENT
INTEREST FOR 10 YEARS IF IT GETS INTEREST 6 TIMES
A YEAR ?
37
WHAT IS THE INTEREST EARNED FROM PLACING 2,500
IN A SAVINGS ACCOUNT THAT EARNES 5.5 PERCENT
INTEREST FOR 10 YEARS IF IT GETS INTEREST 6 TIMES
A YEAR ?
38
WHAT IS THE INTEREST EARNED FROM PLACING 2,500
IN A SAVINGS ACCOUNT THAT EARNES 5.5 PERCENT
INTEREST FOR 10 YEARS IF IT GETS INTEREST 6 TIMES
A YEAR ?
39
WHAT IS THE INTEREST EARNED FROM PLACING 2,500
IN A SAVINGS ACCOUNT THAT EARNES 5.5 PERCENT
INTEREST FOR 10 YEARS IF IT GETS INTEREST 6 TIMES
A YEAR ?
40
WHAT IS THE INTEREST EARNED FROM PLACING 2,500
IN A SAVINGS ACCOUNT THAT EARNES 5.5 PERCENT
INTEREST FOR 10 YEARS IF IT GETS INTEREST 6 TIMES
A YEAR ?
41
WHATS IMPORTANT?

• PRINCIPLE - P 2500
• RATE OF INTEREST - r 5.5
• NUMBER OF INTEREST PERIODS A YEAR - n 6
• TIME IN YEARS - t 10

42
YOU DO THE MATH
43
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION

44
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS

45
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS

46
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS

47
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS

48
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS

49
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS

50
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS
• MULTIPLY BY PRINCIPLE

51
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS
• MULTIPLY BY PRINCIPLE

52
P 2500 r 5.5 n 6 t 10

• CHOOSE YOUR EQUATION
• WORK INSIDE THE PARENTHESIS
• WORK THE EXPONENTS
• MULTIPLY BY PRINCIPLE
• YOU HAVE SOLVED THE EQUATION

53
YOU DO THE MATH
54
WHAT IS THE INTEREST EARNED FROM PLACING 62,500
IN A SAVINGS ACCOUNT THAT EARNES 15 PERCENT
INTEREST FOR 12 YEARS IF IT GETS INTEREST 4 TIMES
A YEAR ?
55
WHAT IS THE INTEREST EARNED FROM PLACING 62,500
IN A SAVINGS ACCOUNT THAT EARNES 15 PERCENT
INTEREST FOR 12 YEARS IF IT GETS INTEREST 4 TIMES
A YEAR ?YOU HAVE 365,855.07
56
HOMEWORK

• 1. LET P 2400, R 12 , N 2 AND T 4
  FIND A
• 2. LET P 9000, R 7.2, N 4, T 5. FIND
  A.
• 3. LET P 4,500, R 9, N12, T 0.5 FIND A
• 4 AND 5 ARE ON THE NEXT PAGE

57
HOMEWORK

• CARI DEPOSITIED 2000 IN A SAVINGS ACCOUNT. THE
  ACCOUNT EARNED 8 ANNUAL INTEREST COMPOUNDED
  SEMIANNUALLY (TWICE A YEAR). HOW MUCH MONEY WAS
  IN THE ACCOUNT AT THE END OF 3 YEARS?

• THRIFT SAVINGS BANK PAYS 10 ANNUAL INTEREST
  COMPOUNDED QUARTERLY (FOUR TIMES A YEAR) ON ITS
  TWO YEAR CERTIFICATES. HOW MUCH WOULD A 5000
  CERTIFICATE BE WORTH AT THE END OF TWO YEARS?